Latest news with #UKUSrelations
Daily Mail
3 days ago
- Business
- Daily Mail
Do we have a US trade deal or not? Business Secretary meets Trump officials amid fears there is STILL no timetable for terms to be finalised
Labour is facing questions over its trade deal to exempt the UK from Donald Trump 's tariffs with no date set for it to come into force a month after it was agreed. Sir Keir Starmer and Mr Trump announced the broad terms of an agreement almost a month ago that would excise the UK from some of the US president's punitive levies on steel and cars while increasing market access for other goods. The Prime Minister hailed the announcement as a major achievement, saying the UK was the first nation to reach such an agreement with Mr Trump. But almost four weeks on, Trade Secretary Jonathan Reynolds will meet US officials in Paris today to hammer out a timeline for change to actually happen. The details are still being worked out ahead of a formal deal, and the Government hopes for an agreement within weeks. That meeting comes amid uncertainty about the future of Mr Trump's tariffs after a US court last week ruled many of them unlawful, before an appeals court reinstated the levies pending a further hearing. Last week also saw Mr Trump announce that he would double tariffs on steel to 50 per cent, starting on Wednesday, and it remains unclear how the UK would be affected. Andrew Griffith, the Conservative shadow business secretary, said: 'Labour told the British public we had a deal with the US – but one month on there is no deal in sight, meaning British businesses and workers continue to suffer because of Labour's failed negotiations.' Mr Reynolds is expected to discuss implementing the deal during talks with US trade representative Jamieson Greer in Paris on Tuesday, where he is attending a meeting of the OECD. Mr Reynolds's visit to Paris is part of a three-day trip, during which he is expected to meet other trade ministers and attend a G7 ministerial meeting before heading to Brussels for meetings with his EU counterparts. During the trip, the Trade Secretary will argue that the UK is a dependable partner in an era of increasing global volatility. He said: 'Our deals with the US, EU and India are proof that the UK is the most connected country in the world to do business. Along with our modern industrial strategy, our Plan for Change is making the UK a safe, stable bet in uncertain times. 'We recognise our relationship with G7 allies and EU counterparts must continue to evolve and deliver a better trading environment for our businesses and exporters. 'That's why we want to wipe away costly, business-blocking barriers and open up opportunities to grow our economy, create jobs and put more money in people's pockets.' Almost four weeks on, Trade Secretary Jonathan Reynolds will meet US officials in Paris today to hammer out a timeline for change to actually happen. Meanwhile, the legality of the approach used for imposing the most sweeping of Trump's tariffs has been cast into doubt. Last Wednesday, the Court of International Trade ruled that Trump had overstepped his authority with tariffs devised under the International Emergency Economic Powers Act, including the 'Liberation Day' levies that his the UK. Less than 24 hours later, an appeals court temporarily paused that decision. The tariffs at the center of the legal dispute are expected to remain in effect as the case plays out.
The Independent
3 days ago
- Business
- The Independent
Trade Secretary to push for timeline on US tariff exemption
Trade Secretary Jonathan Reynolds is set to meet US officials on Tuesday as the UK aims to set a timeline for its exemption from President Donald Trump's tariffs. Sir Keir Starmer and Mr Trump announced the broad terms of an agreement last month that would exempt the UK from some of the US president's tariffs on steel and cars while increasing market access for other goods. The Prime Minister hailed the announcement as a major achievement, saying the UK was the first nation to reach such an agreement with Mr Trump. But the details are still being worked out ahead of a formal deal, and the Government hopes for an agreement within weeks. Mr Reynolds is expected to discuss implementing the deal during talks with US trade representative Jamieson Greer in Paris on Tuesday, where he is attending a meeting of the OECD. That meeting comes amid uncertainty about the future of Mr Trump's tariffs after a US court last week ruled many of them unlawful, before an appeals court reinstated the levies pending a further hearing. Last week also saw Mr Trump announce that he would double tariffs on steel to 50%, starting on Wednesday, and it remains unclear how the UK would be affected. Mr Reynolds's visit to Paris is part of a three-day trip, during which he is expected to meet other trade ministers and attend a G7 ministerial meeting before heading to Brussels for meetings with his EU counterparts. During the trip, the Trade Secretary will argue that the UK is a dependable partner in an era of increasing global volatility. He said: 'Our deals with the US, EU and India are proof that the UK is the most connected country in the world to do business. Along with our modern industrial strategy, our Plan for Change is making the UK a safe, stable bet in uncertain times. 'We recognise our relationship with G7 allies and EU counterparts must continue to evolve and deliver a better trading environment for our businesses and exporters. 'That's why we want to wipe away costly, business-blocking barriers and open up opportunities to grow our economy, create jobs and put more money in people's pockets.' Andrew Griffith, Conservative shadow business secretary, said: 'Labour told the British public we had a deal with the US – but one month on there is no deal in sight, meaning British businesses and workers continue to suffer because of Labour's failed negotiations. 'After snatching the winter fuel payment, lying about not increasing taxes, and misleading the public by saying the US trade deal was done, the public will rightly not trust a word Labour says. 'As all the other political parties wrangle over how to spend more taxpayers money, only the Conservatives are committed to being responsible with the public finances.'
Daily Mail
27-05-2025
- Business
- Daily Mail
UK still hoping to slash Trump's 10% tariffs on goods, says Mandelson
Britain is hoping to negotiate down Donald Trump 's 10 per cent 'baseline' tariffs on UK good sold to America, Lord Mandelson said today. The Labour peer, who is the UK's ambassador to the US, outlined how work is ongoing to 'address' the 'reciprocal' tariffs the US President has imposed. Earlier this month, Prime Minister Sir Keir Starmer and Mr Trump announced an agreement to provide UK relief to American tariffs on cars and steel. But a 10 per cent baseline tariff on most UK goods, described by Mr Trump as a 'reciprocal' tariff, still remains in place despite the trade deal. Lord Mandelson, speaking at an Atlantic Council event, said the UK and US should continue to look at reducing both tariffs and non-tariff barriers where possible. Yet he admitted that Mr Trump was 'quite wedded' to his 10 per cent baseline levies. He spoke after the US President backed away from his threat to pose 50 per cent tariffs on imports from the EU next month by pushing a deadline back to 9 July. Lord Mandelson suggested the UK's own trade agreement with the US should serve as a 'template' for others - including the EU - in avoiding a major trade conflict. The former cabinet minister also urged Britain and America to work together in order to beat China in a race to harness the potential of AI. He compared this to the 'Manhattan Project' during the Second World War, when the UK and US collaborated on developing the first nuclear weapons. Speaking about the recently-signed trade agreement between Sir Keir and Mr Trump, Lord Mandelson said: 'We had to deal with the sectoral tariffs as a priority. 'Because they were the ones that presented a particular threat to industry and jobs in Britain. 'We were facing, unless that deal was done, in the following fortnight a massive loss of jobs in our auto sector in the West Midlands and elsewhere in Britain. 'In our steel sector, and potentially - and I'm glad we've got this prospective protection - on aerospace and pharmaceuticals as well. 'I hope this deal between Britain and the US offers a template for other nations, including the EU, to do its own deal with the US. 'Because none of us wants to see big trading partners - even giants - going head-to-head.' Under the agreement announced on 8 May, both Britain and the US agreed to continue trade negotiations in a number of areas. 'We need the reciprocal tariffs, which are slightly different from the sectoral ones, we need to address those as well and we've agreed to do so,' Lord Mandelson added. But, asked to assess the UK's chances of improving the terms of the agreement, he said: 'Let's see, I think the President seems quite wedded to that 10 per cent baseline. 'Within that baseline, I think we can and should look where it is in our mutual advantage to reduce not just the effective tariffs that are operating, but also the non-tariff barriers. 'I think this is a source of great irritation to the President.' Lord Mandelson noted how Mr Trump's baseline tariffs were 'not exactly unique', as he highlighted how Richard Nixon 'had done exactly in the early 1970s'. 'Another 10 per cent baseline tariff put on trade between the US and its partners,' he added. 'So this is not exactly unique, it's not new - I'm not saying it's welcome.' Trade experts have suggested the UK-US deal is a step towards excluding China from global supply chains. And Lord Mandelson said countries in Europe were 'becoming more conscious of the need not to expand or extend our reliance on China'. 'Europe doesn't want to shut out China or decouple from China, but we've got to be much more sceptical,' he added. 'We've got to scrutinise much more carefully key areas where we are overly-dependent on China in our supply chains.' He insisted, under Sir Keir, that Britain would not be returning to the so-called 'golden era' of relations with China under former PM David Cameron. Lord Mandelson urged the UK and US to work together on AI, as he outlined a vision of Britain as 'an AI-driven new model economy for the 21st century'. 'I believe we have to do that with American technology, capital and talent to add to our own. We have all those things in plentiful quantity,' he said. 'If we allow China to win this race - and heavens knows they're catching up with every year that passes - if China wins that AI race they will have the key. 'They will be able to do things that cascade down not just in their own country but everyone elses across the world. 'I don't want to see a world in which China has got the key to AI, where it's able to use that key to open up so many other areas of technological advance. 'Their values, their principles, how they conduct themselves is not right for the sort of world we want to live in and create. 'That's why I think we have to band together, just as we did in the Manhattan Project. 'That was an extraordinary collaboration between two great science-rich nations - our own and the US. 'What goes for the Manhattan Project now needs to go for so many other sectors of technological advance. 'Where we can create huge new sources of improvement in the lives of our people and of humanity.' As well as the trade agreement with the US, Sir Keir has also recently signed a Brexit 'reset' deal with the EU.
Daily Mail
27-05-2025
- Business
- Daily Mail
Britain is still hoping to slash Donald Trump's 10% tariffs on UK goods, says Peter Mandelson - but he warns US President is 'wedded' to his 'baseline' trade levies
Britain is hoping to negotiate down Donald Trump 's 10 per cent 'baseline' tariffs on UK good sold to America, Lord Mandelson said today. The Labour peer, who is the UK's ambassador to the US, outlined how work is ongoing to 'address' the 'reciprocal' tariffs the US President has imposed. Earlier this month, Prime Minister Sir Keir Starmer and Mr Trump announced an agreement to provide UK relief to American tariffs on cars and steel. But a 10 per cent baseline tariff on most UK goods, described by Mr Trump as a 'reciprocal' tariff, still remains in place despite the trade deal. Lord Mandelson, speaking at an Atlantic Council event, said the UK and US should continue to look at reducing both tariffs and non-tariff barriers where possible. Yet he admitted that Mr Trump was 'quite wedded' to his 10 per cent baseline levies. He spoke after the US President backed away from his threat to pose 50 per cent tariffs on imports from the EU next month by pushing a deadline back to 9 July. Lord Mandelson suggested the UK's own trade agreement with the US should serve as a 'template' for others - including the EU - in avoiding a major trade conflict. The former cabinet minister also urged Britain and America to work together in order to beat China in a race to harness the potential of AI. He compared this to the 'Manhattan Project' during the Second World War, when the UK and US collaborated on developing the first nuclear weapons. Speaking about the recently-signed trade agreement between Sir Keir and Mr Trump, Lord Mandelson said: 'We had to deal with the sectoral tariffs as a priority. 'Because they were the ones that presented a particular threat to industry and jobs in Britain. 'We were facing, unless that deal was done, in the following fortnight a massive loss of jobs in our auto sector in the West Midlands and elsewhere in Britain. 'In our steel sector, and potentially - and I'm glad we've got this prospective protection - on aerospace and pharmaceuticals as well. 'I hope this deal between Britain and the US offers a template for other nations, including the EU, to do its own deal with the US. 'Because none of us wants to see big trading partners - even giants - going head-to-head.' Under the agreement announced on 8 May, both Britain and the US agreed to continue trade negotiations in a number of areas. 'We need the reciprocal tariffs, which are slightly different from the sectoral ones, we need to address those as well and we've agreed to do so,' Lord Mandelson added. But, asked to assess the UK's chances of improving the terms of the agreement, he said: 'Let's see, I think the President seems quite wedded to that 10 per cent baseline. 'Within that baseline, I think we can and should look where it is in our mutual advantage to reduce not just the effective tariffs that are operating, but also the non-tariff barriers. 'I think this is a source of great irritation to the President.' Lord Mandelson noted how Mr Trump's baseline tariffs were 'not exactly unique', as he highlighted how Richard Nixon 'had done exactly in the early 1970s'. 'Another 10 per cent baseline tariff put on trade between the US and its partners,' he added. 'So this is not exactly unique, it's not new - I'm not saying it's welcome.' Trade experts have suggested the UK-US deal is a step towards excluding China from global supply chains. And Lord Mandelson said countries in Europe were 'becoming more conscious of the need not to expand or extend our reliance on China'. 'Europe doesn't want to shut out China or decouple from China, but we've got to be much more sceptical,' he added. 'We've got to scrutinise much more carefully key areas where we are overly-dependent on China in our supply chains.' He insisted, under Sir Keir, that Britain would not be returning to the so-called 'golden era' of relations with China under former PM David Cameron. Lord Mandelson urged the UK and US to work together on AI, as he outlined a vision of Britain as 'an AI-driven new model economy for the 21st century'. 'I believe we have to do that with American technology, capital and talent to add to our own. We have all those things in plentiful quantity,' he said. 'If we allow China to win this race - and heavens knows they're catching up with every year that passes - if China wins that AI race they will have the key. 'They will be able to do things that cascade down not just in their own country but everyone elses across the world. 'I don't want to see a world in which China has got the key to AI, where it's able to use that key to open up so many other areas of technological advance. 'Their values, their principles, how they conduct themselves is not right for the sort of world we want to live in and create. 'That's why I think we have to band together, just as we did in the Manhattan Project. 'That was an extraordinary collaboration between two great science-rich nations - our own and the US. 'What goes for the Manhattan Project now needs to go for so many other sectors of technological advance. 'Where we can create huge new sources of improvement in the lives of our people and of humanity.' As well as the trade agreement with the US, Sir Keir has also recently signed a Brexit 'reset' deal with the EU. Critics have blasted the agreement for tying the UK much closer to Brussels' rules. But Lord Mandelson, a former EU commissioner, said: 'There's no point in disaligning ourselves from EU rules and standards where we are operating in Britain those rules and standards in order to export into the European single market. 'Why make a fetish of disalignment when we know that it's in the interests of our businesses and traders to follow those rules and standards?' Yet Lord Mandelson admitted there were 'other areas' - such as on data protection and AI - where the UK should 'follow a more independent regulatory pathway'.
BBC News
14-05-2025
- Business
- BBC News
UK hits back at claims US tariff deal bad for China
The UK government has hit back at suggestions the tariff agreement it reached with the US last week could be damaging to China. It said there was "no such thing as a veto on Chinese investment" in the deal. The UK-US agreement rowed back on big hikes in tariffs on metals and cars imposed by President Donald Trump, but it also included conditions requiring the UK to "promptly meet" US demands on the "security of the supply chains" of steel and aluminium products exported to America. Beijing fears this could see it being excluded from supplying US-bound goods to the UK, telling the Financial Times it was a "basic principle" that bilateral trade deals should not target other countries. At a regular press conference on Tuesday China's foreign ministry spokesperson was asked about the UK's trade agreements with the US and India. Lin Jian said: "As for the trade agreement... between the UK and relevant countries, I would like to point out that cooperation between countries should not target or harm the interests of third parties." China is the world's second biggest economy and the UK's fifth biggest trading partner. In 2024 total bilateral trade hit £ response to the latest comments from China, the UK government said the agreement with the US was "in the national interest to secure thousands of jobs across key sectors, protect British businesses and lay the groundwork for greater trade in the future".Any "external provisions" in the agreement were "not designed to undermine mutually beneficial economic relations with any third country", it said."As the Chief Secretary to the Treasury clearly stated, there is no such thing as a veto on Chinese investment in this trade deal."It added that "trade and investment with China remain important to the UK." Under the UK-US deal Trump's blanket 10% tariffs on imports from countries around the world still applies to most UK goods entering the the deal has reduced or removed tariffs on some of the UK's exports, including steel and terms of the agreement say the UK will "work to promptly meet US requirements on the security of the supply chains of steel and aluminum products intended for export to the United States and on the nature of ownership of relevant production facilities". The US and China have been engaged in a tariffs war since the beginning of this US buys much more from China ($440bn) than it sells to it ($145bn), which is something Trump has long been unhappy reasoning in part for introducing tariffs, and higher ones on countries which sell more to the US than they buy, is to encourage US consumers to buy more American-made goods, increase the amount of tax raised and boost manufacturing jobs. However, on Monday, Trump said talks over the weekend between the US and China had resulted in a "total reset" in terms of trade between the two countries, with tariffs either being cut or suspended on both sides. The result is that additional US tariffs on Chinese imports - that's the extra tariffs imposed in this recent stand-off - will fall from 145% to 30%, while recently-hiked Chinese tariffs on some US imports will fall from 125% to 10%.The move is seen as helping to defuse the trade war between the world's two biggest economies.
